The Link Between Blockchain & Farming

By December Burgess

Consumer concerns about traceability, integrity and verification of source may alter the reporting demands in the supply chain. However, an emerging technology has the potential to revolutionize the way the agriculture industry addresses this and make it much easier.

“There’s a trend in the world right now moving people to want to know where products come from and they want it to be verified,” explained Jefferson Gardner, a certified blockchain expert.

Blockchain is a system for storing data where different segments or ‘blocks’ of information are stored on computers that are linked to each other, creating a ‘chain’ of information. Experts expect this technology will lower transaction costs, open new markets and improve traceability and food safety.

Decentralization is a key component to blockchain, allowing information to be easily accessible for all players and creating a system where no single person has authority over all the data.

Blockchain uses a peer to peer network; which means the information is constantly recorded and shared between the participants connected. That makes it far less vulnerable to being hacked, exploited or lost.

“Centralization is one of the big problems we run into in the world,” said Gardner. “Big corporations are pulling all of this information and protecting it. They don’t want to play in the sandbox with anyone else.”

Gardner likened this to consumers posting videos on Facebook, saying that once the data is uploaded to servers across the world, the company is what manages and controls that information as the central point of storage.

Industry leaders and companies are already starting to implement blockchain in their businesses. In December 2016, AgriDigital became the first in the world to sell 2346 tons of grain using blockchain technology.

However, blockchain is still in its fledgling stages and people don’t know enough about it to make it mainstream.

 “The first step of implementation – what comes before that – is education,” he said.

He went on saying that industry professionals will benefit from learning about blockchain and understanding its uses, but the most important part of the transition lies with data.

“If you’re a farmer, how much data are you creating that you know you are creating? How much data are you collecting that just isn’t structured,” he asked. “Are we confident in that data over the long term?”

Gardner recommended industry professionals outfit management strategies towards automation before developing their blockchain.

“There’s a common saying: ‘Garbage in, garbage out.’ And if they have bad data that’s incorrect, what’s the use of it?”

Though consumers are part of the main drive for getting this technology stream-lined, Gardner said there are benefits for the industry in the long-term.

He compared an early adopter to the late majority 10 years down the line, stating that if a producer’s competitor has been on blockchain for a shorter period, their data may be perceived as less trustworthy.

“You can provide them [collaborators] a much better integrity for the data set that helps you make decisions as well as them,” he said.

He also emphasized that professionals need to be thinking long-term for blockchain to be right for them.

“The return of investment for a local farm may not be immediately realized,” he said, “We need to collectively come together and think about our industries more as an entire ecosystem.”

He also said that while blockchain alone may not be entirely useful for a farmer or a seed producer, the convergence of artificial intelligence and automation allows for greater opportunity.

The example he gave followed environmental variables and impact on yield.

“A seed producer would be able to capture moisture levels, verification, location [both previous and current], the conditions of the environment that seed has been sitting in and then record and share that data across supplier value chains.”

This helps seed producers make better decisions based on environmental factors and provide a better life for that seed before it gets to the farmer.

“After the farmer cultivates and records all that data that they’re capturing, we can then say ‘Hey, your seed under this condition and under the conditions that the farmer implemented were able to provide this much yield,” he said, “and then we’re able to identify patterns.”

For farmers, Gardner theorized it could help with targeted pesticide use, something he believes may be beneficial to dissuade consumer concern.

“I could see a future where farmers are able to get a premium for their product based on the quality of seed, the verification of that seed, as well as the verification of the nutrient levels in their crops.”

Gardner predicts it will take 10 years for these technologies to converge said that in the meantime, people need to prepare. For those wanting to get a jump on it, the University of Lethbridge hosts introductory blockchain workshops for business owners and industry professionals.